Chichester Cathedral Enterprises Limited - Limited company accounts 20.1

REGISTERED NUMBER: 01171418

Chichester Cathedral Enterprises Limited

Report of the Directors and

Audited Financial Statements for the Year Ended 31st March 2022

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

4

Income Statement

7

Balance Sheet

8

Notes to the Financial Statements

9

DIRECTORS:

The Very Reverend S J Waine

D Coulthard

N Sutherland

J Harrington

J Allport

Mrs Y Thomson

REGISTERED OFFICE:

Cathedral Office

The Royal Chantry

Cathedral Cloisters

Chichester

West Sussex

PO19 1PX

REGISTERED NUMBER:

01171418

AUDITORS:

Sheen Stickland

Chartered Accountants

Statutory Auditors

7 East Pallant

Chichester

West Sussex

PO19 1TR

The directors present their report with the financial statements of the company for the year ended 31st March 2022.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st April 2021 to the date of this report.

The Very Reverend S J Waine

D Coulthard

N Sutherland

J Harrington

J Allport

Mrs Y Thomson

Other changes in directors holding office are as follows:

Miss H Russell ceased to be a director after 31st March 2022 but prior to the date of this report.

COVID-19

As government imposed restrictions have been eased during the latter part of 2021 and into 2022 the activities of the company have gradually and fully reopened.

The accommodation that was fully refurbished during 2021 is now being utilised.

As a result the company has returned to profit in the current financial year and has been cash positive during the period. This has enable the company to repay a substantial amount of the support received from the Chapter of Chichester Cathedral.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Sheen Stickland, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

D Coulthard - Director

20th July 2022

Opinion

We have audited the financial statements of Chichester Cathedral Enterprises Limited (the 'company') for the year ended 31st March 2022 which comprise the Income Statement, Balance Sheet and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st March 2022 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-

enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims;

-

enquiry of entity's staff to identify any instances of non-compliance with laws and regulations;

-

reviewing minutes of meetings of those charged with governance;

-

reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and

-

auditing the risk of management override of controls including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

P E H Wright FCA DChA (Senior Statutory Auditor)

for and on behalf of Sheen Stickland

Chartered Accountants

Statutory Auditors

7 East Pallant

Chichester

West Sussex

PO19 1TR

20th July 2022

TURNOVER

423,605

96,008

Cost of sales

45,475

13,089

GROSS PROFIT

378,130

82,919

Administrative expenses

251,959

413,537

126,171

(330,618

)

Other operating income

12,752

195,971

OPERATING PROFIT/(LOSS)

3

138,923

(134,647

)

Interest receivable and similar income

16

6

138,939

(134,641

)

Interest payable and similar expenses

9,579

-

PROFIT/(LOSS) BEFORE TAXATION

129,360

(134,641

)

Tax on profit/(loss)

4

-

-

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

129,360

(134,641

)

FIXED ASSETS

Tangible assets

5

21,895

30,976

CURRENT ASSETS

Stocks

6

22,658

24,269

Debtors

7

6,545

7,440

Cash at bank

73,209

99,222

102,412

130,931

CREDITORS

Amounts falling due within one year

8

171,548

338,508

NET CURRENT LIABILITIES

(69,136

)

(207,577

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(47,241

)

(176,601

)

CAPITAL AND RESERVES

Called up share capital

9

2

2

Retained earnings

10

(47,243

)

(176,603

)

SHAREHOLDERS' FUNDS

(47,241

)

(176,601

)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 20th July 2022 and were signed on its behalf by:

The Very Reverend S J Waine - Director

D Coulthard - Director

1.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Furniture and Equipment

-

20% on cost and 10% on cost

Computer equipment

-

25% on cost

Assets with an initial cost price which exceeds £500 are capitalised.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Going concern

The Directors consider that following the easing of Covid-19 restrictions and the commencement of all the activities that the company is now trading profitably and cashflow generation is positive and is expected to remain so for the foreseeable future.

In the event of further restrictions or other unforeseen events the Chapter of Chichester Cathedral remain committed in their support for the company.

The Directors are of the opinion that the company is a going concern and will remain so for a period of at least twelve months from the date of approval of these financial statements and therefore the financial statements have been prepared on that basis.

2.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

129,181

298,507

The average number of employees during the year was as follows:

2022

2021

Shop and accommodation

5

13

3.	OPERATING PROFIT/(LOSS)

The operating profit (2021 - operating loss) is stated after charging:

2022

2021

£

£

Depreciation - owned assets

9,081

9,122

4.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31st March 2022 nor for the year ended 31st March 2021.

5.	TANGIBLE FIXED ASSETS

Furniture

and

Computer

Equipment

equipment

Totals

£

£

£

COST

At 1st April 2021

48,089

2,055

50,144

Disposals

(3,995

)

-

(3,995

)

At 31st March 2022

44,094

2,055

46,149

DEPRECIATION

At 1st April 2021

18,243

925

19,168

Charge for year

8,670

411

9,081

Eliminated on disposal

(3,995

)

-

(3,995

)

At 31st March 2022

22,918

1,336

24,254

NET BOOK VALUE

At 31st March 2022

21,176

719

21,895

At 31st March 2021

29,846

1,130

30,976

6.

STOCKS

2022

2021

£

£

Stock - shop

22,658

24,269

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

1,535

2,054

Other debtors

5,010

-

VAT

-

5,386

6,545

7,440

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

4,126

1,718

Amounts owed to group undertakings

153,040

322,277

Social security and other taxes

-

2,649

VAT

6,569

-

Other creditors

1,213

3,685

Accruals and deferred income

6,600

8,179

171,548

338,508

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

2

Ordinary

1

2

2

10.

RESERVES

Retained

earnings

£

At 1st April 2021

(176,603

)

Profit for the year

129,360

At 31st March 2022

(47,243

)

11.	RELATED PARTY DISCLOSURES

The company owed the Chapter of Chichester Cathedral a total of £153,040 as at 31 March 2022 ( 2021 £322,277).

During 2021 the company entered into a loan agreement with Chapter whereby Chapter provided a total loan facility of £400,000 to support the company through the Covid-19 pandemic and with its recovery following the lifting of restrictions. This loan facility remains in place for a maximum period of seven years and carries interest at the rate of 3.5% over the prevailing bank base rate per annum.

At the balance sheet date £62,701 remains outstanding under this facility and loan interest amounting to £9,579 has been charged in the current financial year.

In addition to the above a further £90,340 is due to Chapter in respect of transactions under normal commercial terms.

All sums due to Chapter are expected to be repaid within the next twelve months.